AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Pioneer Cement Ltd. (PIOC) has reported a significant 25% year-over-year increase in earnings for the first quarter of the fiscal year 2026, driven primarily by an uptick in offtakes, according to a recent financial release. The company’s earnings rose to PkR1.3 billion, or PkR5.6 per share, compared to PkR1.0 billion, or PkR4.5 per share, in the same period last year.
Revenue for the quarter increased by 7% year-over-year, reaching PkR8.4 billion, up from PkR7.9 billion in the same period last year. This growth was attributed to an 18% increase in offtakes, although it was partially offset by a 10% decline in retention prices.
Despite the rise in revenue, Pioneer Cement experienced a moderate decline in gross margins, which fell to 29.8% from 30.4% in the previous year. This was largely due to the changes in offtakes and retention prices.
The company’s finance costs saw a substantial decrease of 57% year-over-year, dropping to PkR214 million from PkR493 million. This decline was attributed to easing interest rates and a 24% reduction in outstanding debt.
Other income for the quarter increased by 74% year-over-year, rising to PkR91 million compared to PkR53 million in the same period last year. This growth was driven by a fivefold increase in cash and short-term investments.
On a sequential basis, Pioneer Cement’s profitability improved by 13% quarter-over-quarter, supported by better gross margins and a 3% increase in offtakes.
AKD Securities Limited has maintained a ‘Buy’ stance on Pioneer Cement, with a target price of PkR345.5 per share by June 2026, suggesting a potential total return of 31%. The positive outlook is based on the company’s strong deleveraging efforts, improved utilization projections, and increasing gross margins due to an efficient power mix.